Pune based property tax system on cards
Dec 06, 2013
Source : The Times of India

 

NAGPUR: The Nagpur Municipal Corporation (NMC) is all set to implement Pune Municipal Corporation's (PMC's) ready reckoner plus rental-based system to calculate property tax. "There will be upper and lower ceilings on increase or decrease of tax. It will not increase beyond double the monthly rent prevailing in the market nor will it fall below 50% of this amount," said NMC's tax committee chairman Girish Deshmukh.

"At present, the tax is computed on the annual rateable value system. The general body had decided to replace this system in 2011. However, the new method was never adopted. Now, NMC will table the new tax proposal before the House in February. The general body's decision in 2011 on property tax calculation will be superseded," Deshmukh said.

He said that the new tax system will bring down other taxes like general water tax. Presently, this tax is 40% of the total property tax amount. In addition, NMC levies a separate water tax.

The civic body's present practice of charging property tax on annual letting value (ALV) has led to many disputes as old and big structures pay lesser amount than new and small constructions.

After a study tour to Pune a couple of months ago by a team of NMC officials and corporators, Deshmukh said that the NMC had decided to go in for the capital value-based system as it is a systematic and rational way to calculate property tax. "It has increased the property tax recovery of the PMC significantly and hence NMC should go for it," Deshmukh said.

Under the present system, first the maximum possible monthly rent of a property is calculated. Then it is multiplied by twelve to determine ALV. The property tax is a certain percentage of ALV depending on the type of property. This system has led to many disputes as old and big structures pay lesser amount than new and small constructions.

In the new system, the value - a percentage of which will be the property tax - will be based on actual value of the property. The figure will be based on the ready reckoner used for calculating stamp duty by the revenue department.

"It will be a people-friendly system and even citizens can calculate their own property tax. The capital value-based system will be upgraded every year. The current system to calculate property tax is discriminatory and attracts many complaints," Deshmukh said.

Under the MMC Act, the NMC will also repeal the old rules of CNC tax and frame new rules, Deshmukh said, adding NMC will also have to keep ready its tax structure for every financial year by February. The meeting also discussed to assign different persons for tax assessment and recovery works. The new system would increase tax collection by up to 200% and the civic body will be able to use the revenue for developmental purposes.

The state government is encouraging municipal bodies to implement the new taxation system which will entitle them to benefits under Jawaharlal Nehru National Urban Renewal Mission.

Latest Realty News

Home away from home near Mumbai
Dec 06, 2013
MUMBAI: Driving out of the city on a weekend to the beautiful landscape in the western ghats within a 200-kms distance from Mumbai is now seen more than a weekend getaway. Given the plethora of options in housing available in the scenic spots nestled in the hills, people increasingly prefer the option of driving to their second homes and relaxing over the weekend. With the Konkan coastline with its verdant landscape and lush greenery on one side and the Arabian Sea on the other, a second home in
Destination development: First mover advantage
Dec 06, 2013
PUNE: Beyond the oft-repeated developers’ rhetoric ‘location, location and location’ as the USP of the project, lies the fact that today’s prime location was once a deserted area that most developers were not ready to bet on with the kind of huge investment that realty projects demand. It has not just been the huge investment involved but the infrastructure, or rather lack of it, which often made them play safe. Though, in some of the cases, the government authorities took the initiative to prov
What's your real return?
Dec 06, 2013
MUMBAI : This tax-saving season, before buying a traditional money-back insurance policy, ask a vital question to the insurer or the agent — what is the internal rate of return (IRR)?
Metro and monorail: A boon for Mumbai suburbs
Dec 06, 2013
MUMBAI: P Nagarajan, a resident of Andheri, is upbeat about both, the monorail and the metro project, even though the projects have been delayed. For many like him residing in the suburbs, these projects are going to make life much easier. According to property analysts, these projects are being envisaged as game-changers in terms of connectivity and will reduce both, traffic congestion and commuting time.
Godrej Properties buys out PE firm in Kolkata project
Dec 05, 2013
MUMBAI: Godrej Properties Ltd has bought out private equity (PE) firm Red Fort Capital’s 49 per cent stake in its subsidiary Godrej Developers Pvt Ltd (GDPL) for an undisclosed amount.
Why India needs REITs?
Dec 05, 2013
MUMBAI: A real estate investment trust (REIT) is a fresh investment mechanism being planned by the Securities and Exchange Board of India (SEBI). A REIT manages and owns income-generating developed property and is intended to offer common units to the public as an option for investment. These units represent ownership in the business of managing income-producing properties. REITs will make available away to real estate developers to commercialise developed property, providing an exit path. It wi
Conditions on RTI access to building plans lifted in Maharashtra
Dec 05, 2013
MUMBAI: State information commissioner on December 4 withdrew an order issued last month that imposed certain qualifications on obtaining building plans approved by the BMC under the Right to Information (RTI) Act.
Single-window clearance will cut housing cost, Pune realtors says
Dec 05, 2013
PUNE: Higher input, finance costs, non-availability of bank finance for real estate projects and exorbitant taxes are some of the problems that will be debated in the forthcoming Credai Conclave 2013, which will take place in New Delhi on December 13 and December 14.
Focus on delivery makes Mumbai realty realistic
Dec 05, 2013
MUMBAI: A perception is gaining ground in Mumbai that the city’s property market has reached a saturation point, with critics citing the standing inventory of 48 months as evidence. However, a closer look at the market suggests that even though it is facing the effects of an overall slowdown, like any other part of the country, the high inventory level is not necessarily a sign of stress at the project level or with developers’ balance sheets.
Buying a house? It’s right time for realty check
Dec 05, 2013
MUMBAI: A recent report from property consultancy firm Knight Frank says that real estate prices in certain Mumbai areas have declined by 10%. The same report says almost 45% of the new properties that are coming up in the city are unsold.

Latest Realty News Of State

Realty Talk's